Deutsche Bank AG expects to pick up clients and staff from Credit Suisse Group AG after the Swiss lender had to be rescued by UBS Group AG.
(Bloomberg) — Deutsche Bank AG expects to pick up clients and staff from Credit Suisse Group AG after the Swiss lender had to be rescued by UBS Group AG.
Some customers who have been doing business with both firms may be seeking to diversify following the merger of the two Swiss banks, creating opportunities in areas including wealth management, corporate banking and investment banking, according to Deutsche Bank Chief Financial Officer James von Moltke.
“We’re a natural home for some of those client relationships and people, and that’s an opportunity we’ll look to capitalize on,” von Moltke said in a Bloomberg TV interview.
The German lender is among banks that have poached dozens from Credit Suisse in recent months as the Swiss firm’s troubles worsened. Deutsche Bank on Thursday said it’s planning more hires, in areas such as private banking, corporate banking and dealmaking, as Chief Executive Officer Christian Sewing seeks to tap additional revenue opportunities.
Wall Street Eases Hiring Freeze in Grab for Credit Suisse Talent
The open attempts by rivals to lure clients and staff have become a key challenge for UBS CEO Sergio Ermotti as he embarks on a restructuring that will last several years. Credit Suisse said earlier this week that it’s continuing to lose client money, after more than 200 billion francs of customer deposits were pulled over a six-month period.
At one point during the banking crisis, Deutsche Bank itself even became a target of speculators, when trades in the firm’s credit default swaps sparked a selloff in the shares in late March. Von Moltke said that lender lost 1% of its deposits in the wake of the crisis.
“Once March was over and we were into April, like a light switch, the concerns around the banking industry went away,” he said in the interview. “And we’ve seen deposits stabilize and grow over the course of April.”
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